Niko Starts Indonesian Drilling Program

Niko Resources announced commencement of its exploration drilling program in Indonesia and participation in the company’s twenty‐first block in the country.

Niko will partner with Zaratex N.V. in the 5908km2 Lhokseumawe PSC in western Indonesia.

The block is located directly adjacent to the giant Arun field (>3.1BBOE) and associated LNG plant. A 3865km2 3D program was acquired on the block and a number of high impact prospects were subsequently identified. Drilling is to commence in the shallow water portion of the block in April with two wells. The Candralila‐1 and Ratnadewi‐1 prospects will be drilled back to back and if successful will be monetized relatively quickly by accessing the existing extensive local infrastructure.

Niko’s deep water rig, the Diamond Ocean Monarch, is scheduled to arrive in Lhokseumawe in September to drill the Jayarani‐1 well. This will be the first well in Niko’s planned program of more than 25 deep water wells in Indonesia.

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LNG World News Staff, April 3, 2012